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  • uploads///last mt
    Company & Industry Overviews

    Inside the Tata Steel Crisis: A Tipping Point for ArcelorMittal?

    Tata Steel is exiting its UK operations after years of losses. But ArcelorMittal gets ~50% of its revenues from Europe, leveraging it to European steel.

    By Mohit Oberoi, CFA
  • Financials

    Must-know: Why did the Indian rupee free-fall in 2013?

    India’s current account deficit rose to 4.8% of GDP in 2012–2013, largely financed through hot money flows, and exceeded the government’s target level of 2.5% to 3% of GDP.

    By Phalguni Soni
  • uploads///part  cash flows
    Earnings Report

    Why Investors Shouldn’t Fret over MT’s Negative Free Cash Flow

    In this article, we’ll look at ArcelorMittal’s 1Q17 cash flow and leverage positions. As of the end of 1Q17, ArcelorMittal had net debt of $12.1 billion.

    By Mohit Oberoi, CFA
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    Earnings Report

    AK Steel: A Mainly Positive 2015 Outlook

    AK Steel outlook Previously in this series, we discussed AK Steel (AKS) 1Q 2015 earnings. In this part, we’ll discuss its outlook for 2015. On April 30, AK Steel announced a price increase across all its flat rolled steel products. Before AK Steel, ArcelorMittal (MT) had also increased prices for its steel products. These price increases should […]

    By Mohit Oberoi, CFA
  • uploads///part  korea steel imports
    Macroeconomic Analysis

    The Dynamics of May Steel Import Data

    In May, US steel imports from South Korea and Russia fell 39% and 65%, respectively, in May. Steel imports from Japan and Brazil increased 20% and 11%, respectively.

    By Mohit Oberoi, CFA
  • uploads///Real estate climate index
    Macroeconomic Analysis

    China’s Real Estate Climate Index is Back from Its Lows

    China’s real estate climate index was up 0.40 basis points to 93.03 in July. Prior to this gain, the index had fallen in every month but October since February 2014.

    By Anuradha Garg
  • uploads///basic materials
    Basic Materials

    A Look at the Basic Materials Sector’s Dividend Yield

    Of the various industries in the basic materials sector, integrated mining noted the highest dividend yield.

    By Amanda Lawrence
  • uploads///part  china car sales
    Basic Materials

    Chinese Steel Demand: Indicators Point to Slowing Growth Rates

    In the previous part of this series, we looked at US steel demand indicators. In this part, we’ll look at Chinese steel demand indicators.

    By Mohit Oberoi, CFA
  • uploads///part
    Company & Industry Overviews

    Can ArcelorMittal Succeed in India by Acquiring Essar Steel?

    ArcelorMittal’s (MT) subsidiary ArcelorMittal India Private Limited has made a bid to acquire troubled Indian steelmaker Essar Steel.

    By Mohit Oberoi, CFA
  • uploads///part  revenue
    Basic Materials

    Key Drivers of ArcelorMittal’s 4Q17 Revenues

    ArcelorMittal (MT) reported revenues of $17.7 billion in 4Q17. The company posted revenues of $17.6 billion in 3Q17 and $14.1 billion in 4Q16.

    By Mohit Oberoi, CFA
  • uploads///part  iron ore
    Basic Materials

    Iron Ore Prices Could React to China’s Demand and Supply Dynamics

    Generally, steelmaking raw materials and steel prices tend to move in tandem. Steel prices react to changes in raw material prices and vice versa.

    By Mohit Oberoi, CFA
  • uploads///part  companies
    Basic Materials

    Size Matters: Which Are the Top 10 Steel-Producing Companies?

    In this series, we’ll look at the top ten companies in the global steel industry based on steel production, steel consumption, and steel imports.

    By Mohit Oberoi, CFA
  • uploads///part  revenues
    Earnings Report

    What to Make of ArcelorMittal’s 1Q17 Performance

    ArcelorMittal’s 1Q17 operating income rose sharply in 1Q17 compared to 4Q16. There are several other metrics we can look at to assess a company’s financial performance.

    By Mohit Oberoi, CFA
  • uploads///part  china
    Company & Industry Overviews

    How China Could Affect the Steel Industry’s 4Q16 Outlook

    Because China is the world’s largest steel consumer, it’s important for investors in companies such as U.S. Steel, ArcelorMittal, POSCO, and Gerdau to keep track of the Chinese steel industry.

    By Mohit Oberoi, CFA
  • uploads///part  brazil
    Basic Materials

    How Brazil and Mining Added Flavor to ArcelorMittal’s 2Q Performance

    In 2Q16, ArcelorMittal’s Mining segment generated an EBITDA of $163 million as compared to $98 million in the sequential quarter.

    By Mohit Oberoi, CFA
  • uploads///part  global steel production
    Macroeconomic Analysis

    Global Steel Production Continued Its Losing Streak in May

    Global steel production has fallen on a YoY (year-over-year) basis for 17 consecutive months. In May, production fell 0.09% YoY.

    By Mohit Oberoi, CFA
  • uploads///china production
    Company & Industry Overviews

    Why China Is Churning Out More Steel This Year

    China produced 70.5 million metric tons of steel products in May 2016, according to data released by China’s National Bureau of Statistics.

    By Mohit Oberoi, CFA
  • uploads///part
    Company & Industry Overviews

    Are There Any Relative Opportunities in the Steel Industry?

    May is turning out to be a rough month for steel companies as concerns over the health of the world’s second-largest economy have resurfaced.

    By Mohit Oberoi, CFA
  • uploads///hrc
    Company & Industry Overviews

    Why the Hot Rolled Steel Trade Case Might Not Be Very Effective

    The US has imposed preliminary duties on three key steel product categories: hot rolled coil (or HRC), cold rolled coil (or CRC), and corrosion-resistant steel products.

    By Mohit Oberoi, CFA
  • uploads///mt
    Company & Industry Overviews

    What Does the Correction in Iron Ore Prices Mean for ArcelorMittal?

    Integrated operations have been one of the factors driving steel companies’ recent performances. Iron ore and coal mining fall under steel companies’ upstream operations.

    By Mohit Oberoi, CFA
  • uploads///TRAOXs Top Ten Invested Geographies
    Fund Managers

    Fast Facts about TRAOX

    TRAOX aims to grow capital by investing in “stocks issued by companies that are located in, or that have economic ties to, Asia (excluding Japan).”

    By David Ashworth
  • uploads///T Rowe Price New Asia Fund Vs Peers
    Company & Industry Overviews

    Quantitative Metrics Signal PRASX as a Below-Average Fund

    From a purely net asset value return standpoint, PRASX was a below-average performer for both the one-year period until February 29, 2016, and for 2015.

    By David Ashworth
  • uploads///PRASXs Top Ten Invested Geographies
    Fund Managers

    Must-Know Facts about PRASX

    PRASX has existed since September 1990 and has an expense ratio of 0.94%. A minimum of $2,500 is required to invest in this fund.

    By David Ashworth
  • uploads///steel part  china export
    Company & Industry Overviews

    Will China’s Capacity Cuts Be Enough to Restore Global Balance?

    China plans to curtail its excess steel capacity. However, even if China actually cuts the excess steel capacity, it could be in a very gradual way.

    By Mohit Oberoi, CFA
  • uploads///WFAAXs Top Ten Invested Geographies
    Fund Managers

    Meet the Wells Fargo Asia Pacific Fund (WFAAX)

    The Wells Fargo Asia Pacific Fund invests ~80% in Asia Pacific Basin equities, focusing on firms “with above-average sales and earnings” potential.

    By David Ashworth
  • uploads///Korean ETFs and ADRs
    Macroeconomic Analysis

    Bank of Korea Monetary Policy Is Expected to Remain Stable

    The Bank of Korea maintained its interest rates at record lows of 1.5% in its December meeting. The central bank felt the eased policy stance would assist economic growth momentum.

    By David Meyer
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    Earnings Report

    FuelCell Energy Relies Heavily on Strategic Partners for Funding

    FuelCell Energy (FCEL) relies heavily on its strategic partners for its financing needs through revolving credit facilities.

    By Vineet Kulkarni
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    Earnings Report

    FuelCell Energy’s Service Revenues Down, Product Revenues Up

    FuelCell Energy (FCEL) reported total revenues of $51.5 million for fiscal 4Q15 compared to $54.4 million for fiscal 4Q14.

    By Vineet Kulkarni
  • uploads///steel scrap raw material
    Company & Industry Overviews

    AK Steel’s Raw Material Strategy: Different from Its Peers

    AK Steel uses steel scrap as a raw material. Steel scrap prices have fallen steeply, which should help lower AK Steel’s unit production costs further.

    By Mohit Oberoi, CFA
  • uploads///lme aluminum prices
    Macroeconomic Analysis

    Why Have Markets Ignored “Mega News” of China’s Aluminum Cuts?

    Chinalco announced aluminum cuts of 530,000 tons in October. However, it will now be cutting production by only 150,000 tons.

    By Mohit Oberoi, CFA
  • uploads///part  chinese global steel prices
    Macroeconomic Analysis

    No Early Respite for US Steel Producers as Prices Tank Globally

    Chinese steel prices have continued to slide in November. Chinese steel mills lost $35 per ton on average in 3Q15.

    By Mohit Oberoi, CFA
  • uploads///mt pbv
    Earnings Report

    How Does ArcelorMittal Compare to Its Industry Peers?

    The price-to-book value ratios of ArcelorMittal, Vale, POSCO, Ternium, and Gerdau are 0.26x, 0.49x, 0.34x, 0.70x, and 0.28x, respectively.

    By Gabriel Kane
  • uploads///mt pm
    Earnings Report

    ArcelorMittal’s Revenue and Income Fell in 3Q15

    ArcelorMittal’s YTD price movement has been falling quarter-over-quarter in 2015. After the 3Q15 earnings report, the company fell by 0.55% to close at $5.43 per share.

    By Gabriel Kane
  • uploads///steel prices
    Macroeconomic Analysis

    Investor Update: Where Are US Steel Prices Headed in 2015?

    Spot steel prices have inched up a bit after hitting their low in May. If the US steel demand stays strong and imports decline further, as they did in May, spot steel prices could see further upward movement.

    By Mohit Oberoi, CFA
  • uploads///construction spending
    Macroeconomic Analysis

    Construction Spending Surges past the $1 Trillion Mark

    May construction spending data, released on June 1, came in at a SAAR of $1.04 trillion. This is the second straight month where construction spending has passed $1 trillion SAAR.

    By Mohit Oberoi, CFA
  • uploads///Real estate climate index
    Macroeconomic Analysis

    China’s Real Estate Climate Index Touches Multi-Year Low in May

    China’s real estate climate index has fallen every month but October since February 2014. The index dipped to 92.43 in May, a new multi-year low.

    By Anuradha Garg
  • uploads///construction spending
    Macroeconomic Analysis

    Construction Spending Hits the Highest Level since November 2008

    The construction sector accounts for more than 40% of total steel consumption in the US. In April, construction spending increased 2.2% over the previous month.

    By Mohit Oberoi, CFA
  • uploads///real estate climate index
    Macroeconomic Analysis

    China’s Real Estate Climate Index Drops in April

    The decline in China’s real estate climate index is an indicator that Chinese construction activity has slowed down. China’s real estate sector is a key driver of global steel demand.

    By Mohit Oberoi, CFA
  • uploads///Real estate climate index
    Macroeconomic Analysis

    China’s Real Estate Climate Index Drops Further in April

    The real estate climate index indicates that construction activity in China remains weak despite the government’s easing efforts.

    By Anuradha Garg
  • uploads///china steel production
    Macroeconomic Analysis

    Not Much Cheer from China’s April Steel Production Figures

    Chinese steel production declined 0.7% in April on a year-over-year (or YoY) basis.

    By Mohit Oberoi, CFA
  • uploads///us architectural billing
    Macroeconomic Analysis

    Is US Steel Consumption Headed for a Slowdown?

    US steel consumption grew at 11.7% last year. However, for this year, the World Steel Association expects consumption to decline 0.4% over the previous year.

    By Mohit Oberoi, CFA
  • uploads///constructoin spend
    Macroeconomic Analysis

    US Construction Spending Increased 2.2% in March

    In the latest reading in March, total construction spending increased 2.2% on a YoY basis. However, it declined slightly from February.

    By Mohit Oberoi, CFA
  • uploads///part  scrap
    Macroeconomic Analysis

    Steel Scrap Prices Moved Sideways in April

    Steel scrap prices tanked by more than 25% in February. This helped mini mills. They were at a competitive disadvantage due to the decline in iron ore and coal prices.

    By Mohit Oberoi, CFA
  • uploads///us indicators
    Macroeconomic Analysis

    US Housing Starts Decline For 2 Consecutive Months

    March housing starts declined 3.5% on a YoY basis. In February, housing starts dropped by 2.3%. The data was released on April 16. It was lower than expected.

    By Mohit Oberoi, CFA
  • uploads///china steel demand building sales
    Macroeconomic Analysis

    Chinese Steel Demand Indicators Trend Lower in March

    The construction sector accounts for more than half of China’s steel demand, as it uses steel products like rebars, decks, and joists.

    By Mohit Oberoi, CFA
  • uploads///india per capits part
    Macroeconomic Analysis

    Can India Lead the Global Steel Industry in the Next Decade?

    Edwin Basson, the Director General of WSA, expects another 400 million tonnes of steel demand—led largely by India (EPI).

    By Mohit Oberoi, CFA
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